Public/Private Partnerships 226 Contents Application Selection of - - PowerPoint PPT Presentation

CHAPTER

226

Public/Private Partnerships

16

227

• Application
• Selection of a Developer and/or Development Partner
• Procurement Requirements of the Selected Developer
• Procurement by Parties Other Than the PHA or the Developer
• Resident Involvement
• Procurement by the PHA When Acting as Developer or with

Ownership Interest

• Issues Arising in CSS Procurement Activity
• Contracting with Sub-grantees

Contents

228

• Special provisions associated with selecting PHA development

and mixed-financed partners and procurement rules that apply to these different partners

• OMB procurement requirements found at 2 CFR §200.317–

200.326 apply whenever HUD or other federal funds are used in development or operations of public housing projects

• If public and private funds are co-mingled, 2 CFR §200.317–

200.326 applies

Introduction

229

• Refers to development (through new construction or

acquisition, with or without rehabilitation) or modernization of public housing where public housing units are owned in whole

• r in part by an entity other than PHA

Mixed Finance

230

• For-profit or non-profit partners carrying out physical

revitalization of a mixed-finance project site, bearing financial risk

• An entity with whom PHA enters into a partnership or other

contractual arrangement to provide for mixed-finance development of public housing units

• Has primary responsibility with PHA for development of

housing units and/or non-residential structures

• Development Partner other than PHA Instrumentality must be

procured in accordance with 2 CFR §200.317–200.326

Development Partner

231

• HUD permits QBS method of procurement for selecting

development partner

• QBS method is not permitted for procurement of HOPE VI,

Mixed-finance Program Managers, and legal services

• Requirements and guidance governing selection of

development partner (or master developer) can be found in 24 CFR 905.604(h)(1) of the Mixed-Finance Interim Rule

• All procurement activity must provide for full and open

competition

Selection of Developer/Development Partner

232

• Price is negotiated with highest-ranked offeror based on

responses to RFQ

• Cost and price analysis must be completed prior to submission
• f proposals to determine estimate value for requested

services

Selection of Developer/Development Partner (cont.)

233

• Once developer has been selected, development partner is not

subject to 2 CFR §200.317–200.326

• Except where PHA or instrumentality “exercises significant functions

within the owner entity with respect to managing the development

• f the proposed units”
• PHA or its instrumentality exercise significant functions:
• Acts as sole or managing partner in the ownership entity
• Acting as developer

Procurement Requirements of the Developer

234

• Activities by PHA or its instrumentality not considered

significant functions:

• Monitoring regulatory compliance for units receiving subsidy
• Coordinating communications with agencies regarding project

financing and operations

• Providing Community and Supportive Services (CSS)
• Attending construction meetings and reviewing and approving draws
• Maintaining the waiting list
• Reviewing and approving operating and capital budgets

Procurement Requirements of the Developer (cont.)

235

Entity 2 CFR §200.317–326 Applies Private property managers properly procured by PHA No Program manager subcontracting duties directly No Program manager procuring provider for PHA Yes Resident groups acting as sub-grantees Yes Resident-owned businesses (governed by 24 CFR Part 963 Subpart B) Yes

Procurement by Parties Other Than PHA or Developer

236

• Qualified Resident Management Corporations (RMCs) may be

awarded a sole-source award for property management contracts only

• HUD encourages inclusion of residents on selection panels

provided that PHA constitutes majority membership on panels and residents have been trained in the procurement process

• Subject to the conflict of interest provisions
• PHA representation should constitute the majority of the panel

membership

• PHAs must not delegate procurement responsibility to another

agency/entity

Resident Involvement

237

• Whenever PHA or instrumentality acts as development entity
• r performs a significant role in actions and decision making of

such an entity, requirements of 2 CFR §200.317–200.326 apply to procurement.

• PHA’s procurement with instrumentality is not subject to 2 CFR

§200. However, instrumentality must procure other members

• f operational or development team subject to same

procurement rules as the PHA

Procurement by the PHA as Developer or with Ownership Interest

238

• PHA must comply with 2 CFR §200.317–200.326 when

selecting an administrator for its CSS program

• Social service providers may be sub-grantees if included in

grant application

• Sub-grantees do not have to be competitively procured

Issues Arising in CSS Procurement Activity

239

• PHA may decide to use sub-grantees to complete elements of

project including development and CSS

• PHA is responsible for ensuring sub-grantees comply with

requirements imposed by federal statutes and regulations and any requirements of grant agreements.

Contracting with Sub-grantees